The loss of a top producer is always a blow, but it\u2019s also an opportunity to learn more about your business and make changes if needed.<\/p>\n\n\n\n
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If a top-performing agent tells you they\u2019re leaving, don\u2019t panic. The agent who closes 40% of your company\u2019s sales just walked into your office to tell you they\u2019re leaving so they can start their own brokerage. Don\u2019t panic. \u201cAttrition is a natural and unavoidable part of the business,\u201d says Ben G. Schachter, GRI, broker and president of The Signature Real Estate Companies in Boca Raton, Fla., and co-founder and head of sales of TotalBrokerage Software, a sales and management platform for brokers. \u201cIf you have no attrition, you\u2019re not doing enough business.\u201d<\/p>\n\n\n\n
So, when the inevitable happens, try to navigate the situation with equanimity. If you do, you could possibly make lemonade out of lemons, convincing the agent to stay, gaining insights into your business, solidifying relationships with your agents and maybe even upping your earnings. Here\u2019s how.<\/p>\n\n\n\n
\u201cIf you lost a $3 billion agent, that would be catastrophic,\u201d acknowledges Steve Snider, managing broker for One Sotheby\u2019s Realty in Aventura, Sunny Isles, and Bay Harbor, Fla. But perspective is important, and logic and a little math go a long way. Most of the time, after you factor in splits, losing one agent doesn\u2019t result in that much of a financial loss, he says.<\/p>\n\n\n\n
Do your best to take the loss in stride without showing excessive emotion. \u201cA leader must always show optimism,\u201d Schachter says. Make sure to model the behavior you want to see in your agents. Refrain from saying anything negative to or about the departing agent, Snider and Schachter agree. \u201cThere are plenty of stories of agents leaving and coming back because the bridge was never burned,\u201d Snider adds.<\/p>\n\n\n\n
Always aim for an exit interview, Schachter says. That\u2019s a chance for you to understand the agent\u2019s motivation and possibly even convince the agent to stay. Ask why they\u2019re leaving, and really listen to their answer, he says. \u201cMaybe you can offer them an opportunity to develop in their career or the chance to open an office,\u201d Snider says. When one of his top agents told him she was leaving to work with her husband at his brokerage, he suggested One Sotheby\u2019s Realty buy their business. Ultimately, that\u2019s what happened. The decision proved wise for both parties: This agent recently won a $40 million penthouse listing in South Beach.<\/p>\n\n\n\n
Even if there\u2019s no opportunity to keep the agent on your team, a well-run exit interview helps you remain on good terms. Chances are, you\u2019ll do deals with them soon, Snider says. Offer to talk through the new opportunity with them and support them if they still decide to leave, he adds. Even if they head to a different brokerage, you can still provide support and mentorship, should they want it.<\/p>\n\n\n\n
Finally, if their move is lateral, ask yourself whether it reveals any issues with your business, says Schachter. \u201cLearn as much as you can from them. Their leaving could be a sign of things to come, with other top producers lured away by similar features or offerings.\u201d Maybe it\u2019s a sign you should make some changes.<\/p>\n\n\n\n
On an informal one-on-one basis, Snider offers top agents advance notice of significant changes, including departures. It helps alleviate anxiety and gossip. \u201cI\u2019ll say, they\u2019re leaving and here\u2019s why. We spoke about it, and she really wants to be on a new development project, which we don\u2019t have, and that other brokerage has a project in Coconut Grove, where she lives. She is taking the best next step for her business.\u201d<\/p>\n\n\n\n
Schachter is always prepared to address the issue with anyone who asks. When you explain the situation to those who inquire, remain confident and focus on your brokerage\u2019s strengths, he says.<\/p>\n\n\n\n
\u201cPart of making money is saving money,\u201d Schachter says. A routine evaluation of your expenditures and whether or not you\u2019re maximizing your use of the resources is always a good idea. You can always monitor your fixed versus variable expenses and shed some variable expenses, he adds.<\/p>\n\n\n\n
Take the time to evaluate the resources and amenities you\u2019re providing to your staff and agents, and make sure your team is using them in a way that justifies their expense. If you find that they\u2019re not, consider cutting some things. Maybe you signed a 10-year lease but can cancel some of your technology subscriptions or cut down on mailers and marketing events.<\/p>\n\n\n\n
You need to know what kind of deficit the loss of a top agent creates. Start by evaluating where that agent\u2019s business was coming from. Were you giving them leads? If they were doing relocations or referrals, can you tap into those sources of business? Put a plan in writing that spells out how you\u2019ll recoup that amount over the course of the business year. Again, it\u2019s important to maintain optimism and stay open-minded to the possibilities.<\/p>\n\n\n\n
If too much of your bottom line has been wrapped up in a single agent, for example, it might be time to look for new revenue streams. You could return to selling properties yourself, Schachter says, or explore adding ancillary businesses, like title insurance, property auctions or broker price opinions.<\/p>\n\n\n\n
\u201cThe agent\u2019s departure could create opportunity and conversation,\u201d Snider says. Think about recruiting a new agent or taking stock of your current team to determine who could rise to the occasion. Sometimes, agents who have the potential for stardom are overshadowed by already-established top performers. How can you provide mentorship and resources\u2014marketing dollars, confidence building opportunities and administrative support? What kind of mentorship does the agent need to help them absorb the departing agent\u2019s market area? <\/p>\n\n\n\n
\u201cMaybe,\u201d Snider says, \u201cit\u2019s time to elevate number two.\u201d<\/p>\n\n\n\n
National Association of REALTORS\u00ae
Reprinted with permission<\/p>\n","protected":false},"excerpt":{"rendered":"
The loss of a top producer is always a blow, but it\u2019s also an opportunity to learn more about your business and make changes if needed. If a top-performing agent tells you they\u2019re leaving, don\u2019t panic. The agent who closes 40% of your company\u2019s sales just walked into your office to tell you they\u2019re leaving … <\/p>\n